April 27, 2016

The HALOS Act Cuts Red Tape For Startup Businesses

Washington, DC – Today, the House passed Helping Angels Lead Our Startups (HALOS) Act introduced by New Dem Rep. Krysten Sinema (AZ-09). This bipartisan bill, highlighted in the New Democrat Prosperity Agenda: Winning the Future, will reduce regulatory barriers between startup businesses and potential investors during “demo days.” A large majority of New Dem Members supported this bill.

The bill, which passed through the House Financial Services Committee in March, ensures that startup companies can easily showcase their ideas and connect with angel investors without burdensome verification requirements.

Currently, startups could unintentionally violate rules banning general solicitation to non-accredited investors if they do not adequately vet their audience. “Demo days” have become more vital to startup growth over the last 30 years, so it’s increasingly important to set up a clear path for startup businesses to connect with investors and venture capitalists.

“Innovative startup businesses in Arizona and across the country should have every opportunity to grow and succeed,” said Congresswoman Sinema. “This bipartisan solution provides a clear path for startup businesses to connect with angel investors and venture capitalists without the burden of unnecessary regulation and red tape. I will continue working with my colleagues on both sides of the aisle to help our economy thrive.”

The HALOS Act will strengthen the JOBS Act’s intention and allow startups to focus their resources on building their business. With the HALOS Act, American entrepreneurs can create quality jobs and build the nation’s economy.

###



--->